On Thursday, HSBC reiterated its buy recommendation and 220-euro price target on Telepeformance, whose shares fell 14% yesterday on renewed concerns about the impact of AI on the group's business.
In a research note, the broker recalls that the emergence of new technologies is often synonymous with increased complexity for customers, who could be reassured by Telepeformance's approach combining artificial intelligence and human skills.
With the share price back at its all-time lows of 2012 and October 2023, HSBC believes that the market is exaggerating the risks associated with AI, while ignoring the opportunities that lie ahead.
We remain optimistic that Teleperformance will become a provider of AI-powered solutions", he insists, acknowledging that AI could certainly penalize sales, but also bolster margins.
According to the broker, the French group could also unveil 'ambitious' targets for 2027 at its strategy meeting next week, in this case an annual sales growth forecast of 5% accompanied by an improvement in margins, which should enable it to post EPS growth of 12% per year.
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Teleperformance SE is no. 1 worldwide in outsourcing and corporate consulting services for customer relation management. Net sales break down by activity as follows:
- customer experience management services (83.7%): customer information, technical assistance, customer acquisition, back-office services. The group also offers integrated services for business process management and digital transformation and high added value consulting services. Net sales are distributed by geographic region between Europe/Middle East/Africa (36.3%), North America and Asia/Pacific (36.3%), Latin America (22.5%) and other (4.9%);
- specialized services (16.3%): online interpreting, visa application management and debt collection.
At the end of 2023, the group had over 490,000 employees in 99 countries and offers its services in over 300 languages across over 170 markets.
Net sales by customer sector break down into healthcare (56%), government services (13%), insurance (10%), financial services (7%) and other (14%).
TELEPERFORMANCE SE 
